Orlando, Dec 06, 07 2018

Lean Thinking for

Process Productivity

Agenda

1. Introduction.

2. Vision and Strategies. Action thru Processes

3. Lean Manufacturing Lean Thinking

4. Value and Waste. 7 + 1 Wastes

5. Problem Solving & Improvement Tools

6. Measuring Performance

7. Summary

Strategic Planning

Mission Vision

ESPT

Strategies

• Processes

• Customers

• Values

• VS1

• VS2

• VS3

…… VSn

• SMART Objectives

•Action Plans

• PROCESSES

Performance Indicators System

SMART Objectives

PROCESSES

Processes, Customers & Quality

OK ?

Inputs

Resources

Environment

(ESPT)

ResultsCustomers

NO

YES

Adjust

Quality

(Improve)

Processes

(ACTION)

PROCESSES

What is LEAN?

• “Lean is the elimination of anything not absolutely required to deliver a quality product or service, on time, to our customers”

• LEAN is based on eliminating unnecessary actions

• LEAN links value activity in a continuous sequence

• “Only a small fraction of total time and effort in an organization adds value for end customer”

• Practice & Commitment Lean Thinking Culture

Why LEAN?

• Severe Competitions in all areas of business

• Firms face reduction in margins to keep the market

share

• Every little saving will improve the economy

• Time for every available resource to perform the best

• Operation Cost reduction is critical to survive

• Profits = Price – Cost (price dictated by the market and

cost incurred by us)

• Cost = Activities involved (VA + NVA)

LEAN Principles

1. Specify what creates value from customers’ perspective

2. Adapt all steps across the whole value stream

3. Make those actions that create the Value FLOW at the pull of customer

4. Involve and empower Employees

5. Strive for perfection by continually eliminating the successive layers of waste.

What is Value?

• Value is what the customer wants; when they want it, in the expected quantity and quality they want

• Establish the “customers’ wants”, ask as much as needed to include all aspects

• Analyze the “customers’ wants”, define priorities and relative weights

Define Values in the Eyes of Customer

• What Product / Service?

• What attributes / Features?

• What Quality Levels?

• What Delivery?

oRate

oResponse time expectations

• Which is more important ?

Are we measuring it? If yes, What and How?

Value Adding Activity

• Activities within the company or supply

chain for which the customer would be

happy to pay for

• An activity that changes the size, shape,

fit, form or function of material or

information as to satisfy customers’

demands and requirements

Non-Value Adding Activity

• Activities that do not contributing directly to

satisfying customers’ requirements

• Activities that consume resources but do

not meet the customers’ demands or

requirements

• Necessary Non-value adding: NVA that

are necessary under present operating

system & will take time to eliminate

WASTE

• “Any activity that absorbs resources but does not create value…”

• “Waste is so often in front of us that we always do not see it!”

• “Most of our processing is a waste and it is an ongoing process to remove waste from each layer as to reach perfection”

OHNO’S SEVEN WASTES

WASTE IMPORT

• Waiting (material or people)

• Inventory

• Motion (man)

• Processing

• Over Production

• Re-work / Reject

• Transportation

EIGHTH WASTE

• Untapped Resources (Brainpower)

• People are told to do & not asked to think

• Problems are overlooked & opportunities

missed

• People lose motivation at work. (Leadership)

• Management spends too much time dealing

with day-to-day affairs instead of focusing on

longer-term issues (Important vs Urgent)

Sources of Waste

Layout (distance)

Long setup time

Incapable processes

Poor maintenance

Poor working methods

Lack of training

Lack of adherence

Ineffective scheduling

Poor supervisory skills

Inconsistent measure of

performance

Functional organization

Excessive controls

No back-up / cross

training

Unbalanced workload

No decision rules

No visual control

Supplier quality

Lack of workplace

organization

Bottlenecks

Process Improvement KSS

STOP

No more Wrong Doing

Start

Changes

Keepand

Improve

Use the RIGHT

TOOLS

Depending on the Type of WASTE

A place for everything … and everything in its place !

Demand Rhythm : TAKT Time

• The Available operating time to satisfy customer

demands

• Establishes the pace, beat or cadence of the

process

• Takt time is used to balance the various loads

and identify the bottlenecks in the process

Net Available time per day in seconds

TAKT Time = -------------------------------------------------

Customer demand per day in pieces

Balance: HEIJUNKA & TAKT

A D ECB

2 min. TAKT Time

Production Step

A D ECB

2 min.TAKT Time

Cycle Time

Cycle TimeAvoid Bottleneck,

Combine ?

Sample Map of Value Stream

Customer

M - 2

C/T - 10s

C/O - 30m

D/T - 10%

Q - 6%

M - 1

C/T - 30s

C/O - 5m

D/T - 3%

Q - 16%

M -4

C/T - 30s

C/O - 30m

D/T - 14%

Q - 11%

M - 2

C/T - 10s

C/O - 90m

D/T - 18%

Q - 7%Shipping

PackingTesting

Subassy

Machine

2x/d

ay

2x/w

ee

k

4 days3 days6 days

4 days

10 days

8 days

800/day

Supplier

1000/dayNote: Value Adding time is 70 secs

Inventory moving is 23 days!

FLOW Design – Lay Out – One Piece

• Product or service does not stop once it is

launched

• No “de-tours”, “no back-flows”, “no waiting”

• Interruptions to in-flow work process must be

avoided

“When information and material flow in opposite

directions, the third flow – CASH FLOW starts

pouring in”

Single Minute Exchange of Dies (SMED) Quick Changeover (QCO)

1. Do Product Changes as Quick as Possible

2. Product Mix and Sequence Scheduling

3. Be ready with all “External” operations. Those not requiring line to stop. Minimize “Internal”

4. Use Material Handling Devices to reduce Set Up

5. Prepare Ingredients and Packaging in advance

6. Standardize all Changeover Operations

Other Tools

• Cause – Effect Diagram

• Total Productive Maintenance

• Poka-Yoke. Mistake Proof. Andon

• Kanban / Constant Flow of Work In Process

• Job Standards. Procedures

• Reduce Constraints. Bottlenecks

CAUSA C

CAUSA BCAUSA A

SUBCAUSA

MINICAUSA SUBCAUSA

MINICAUSA

CAUSA D

PROBLEMA(EFECTO)

CAUSA C

CAUSA BCAUSA A

SUBCAUSA

MINICAUSA SUBCAUSA

MINICAUSA

CAUSA D

PROBLEMA(EFECTO)

Seek Perfection

• Continuously monitor, evaluate and assess

the process

• Eliminating wasted steps and defects

• Reducing inventories and volatility

• Cutting management time devoted to fire-

fighting and negotiating. Planning

“The whole enterprise must pursue not its

competitors but perfection”

What to measure?

• % On time delivery to customers

• Do we meet what we promise our customers? (Y / N)

• Cycle Time & Throughput

• Quality – RTY (rolled throughput yield), TDU (total defects per unit)

• Productivity – (Units produced / pers-hour)

• Work In Process Inventory (Units)

• Quality, Delivery, shortage frequency of purchased items

• Annual Inventory turns

• Finished Goods inventory

• Floor Space consumption (used cu. ft. / available cu. ft.)

0

20

40

60

80

100

120

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

0

20

40

60

80

Quality Cost Delivery

Measure

What matters

To customers

¿What

Customer

Requires?

Measure and

Improvement

¿What to use

to measure?

¿Which is

the Target?

Performance Indicators Cycle

Customer

OEE – Overall Equipment

Effectiveness

OEE = Availability * Performance * Quality

OEE = 0,75 * 0,70 * 0,96 = 0,50 = 50%

Cost Reduction

Sales

Price

Production

Cost1

2

3

1

2

3

Price = Cost + Benefit

Some Benefit Bigger Benefit

1 2 3

Measure Production Cost ( $ / Pound )

There is only One Place

where Success come

before WORK, it is …

at DICTIONARY !!

LEAN Message

Andres E. Gimenez Gonzalez

Phone: (214) 347. 6339

gammaconsultores01@gmail.com